Accounts

Under Accounts section, you can set various accounting features. On clicking the Accounts button, various accounting features appear. We will cover only the basic accounting features in this section. Rest of the features will be covered in Advanced Courseware. Basic accounting features are:

Bill-by-bill Details

Bill-by-bill Details feature is useful in keeping track of bills payable / receivable. With this option, you can maintain various bills or references for a single transaction. Along with maintaining bill references, you can keep track of due dates when payment is due and view various reports displaying pending bills, cleared bills and so on. For example, you have sold goods worth Rs. 10,000 on credit basis to a party and the party ensures to pay the payment after fifteen days of delivery of goods. Hence, in this case it is necessary for you to raise a bill for the party stating the due amount and the due date of bill.

To use Bill-by-bill Details feature, you need to perform the following steps:

• Click Administration à Configuration à Features / Options à Accounts tab.
• Enable Bill-by-bill Details feature. On enabling this feature, a Configure button appears next to it. On clicking the Configure button, a Bill Reference Group window appears. In the Bill Reference Group window, you can enable the Enable Grouping of Reference option if you want

to enable Bill Reference grouping. With Bill Reference Grouping, you can classify bills according to their group. For example, a company Star Electronics deals in electronic goods, hence it can create group with name such as LG, Sony, Philips and so on.

Company’s Act Depreciation

In case your company follows the Company’s Act then you can enable this feature to charge depreciation on fixed assets according to the Company’s Act. By default, depreciation is charged according to the IT Act. Companies that need to maintain the books of accounts according to the Company’s Act as well as Income Tax Act need to enable the Company’s Act Depreciation feature. The need for this feature arises on two counts. Firstly, there is a requirement that depreciation should be charged in the books of accounts according to the Company’s Act. Secondly, depreciation according to the Income Tax Act should be reflected in the books of account for tax calculation purpose.

To enable the Company’s Act Depreciation feature, click the Administration à Configuration à
Features / Options à Accounts button. Enable the Company’s Act Depreciation feature in it.

Posting in Accounts Through Sales Return and Purchase Return

You can enable this option if you want to post the sale return / purchase return directly to Sale / Purchase account. Let us understand with the help of an example. In the month of April 2010, for Star Electronics Company, there was a Sale and a Sale Return voucher for Rs. 10,000 and Rs. 5,000 respectively. Now if this feature is enabled then in the Sales account both the transactions are posted and the net balance is Rs. 5,000 credit. In this way, both the inventory and accounting aspect of goods returned are taken care of.

On the other hand, if this feature is disabled then it means that Star Electronics Company does not want Sales Return voucher to be posted to the Sales account directly. Instead, it issues a credit note to reflect the debt on part of the organisation / individual returning the goods. Thus, if the feature is disabled then only the Sales voucher will be posted to the Sales account and the balance will be Rs. 10,000. Now for the goods returned, a Sales Return voucher is entered that takes care of the inventory aspect of the transaction but the accounting aspect is left out. For this purpose, Star Electronics enters a credit note against the organisation / individual returning the goods thus taking care of the accounting aspect of the transaction.

Double Entry System for Payment & Receipt Voucher

Enable this option if you want to follow Double Entry system for entering Payment / Receipt vouchers otherwise disable this option if you want to follow Single Entry system for entering Payment / Receipt vouchers. In the Double Entry system, you need to specify two accounts and the debit / credit aspect of the accounts. Thus, you need to remember the debit / credit aspect of the transaction. In the Single Entry system, you only need to select the payment / receipt mode and specify the affected account. You do not need to remember and specify the debit / credit aspect for the affected accounts.

è If this option is enabled and any Payment / Receipt
voucher exists then you cannot disable this
option.

Show Accounts Current Balance during Voucher Entry

Enable this option if you want to view current balance of the account at the time of entering voucher. On enabling this option, when you select an account in the voucher, current balance of the account will be displayed in the voucher. Thus, you are aware of the account’s balance right at the time of voucher entry and can check whether you are exceeding the credit limit fixed for the account.

Bank Reconciliation

Enable this option if you want to maintain bank reconciliation statement and want to enter cheque issued / deposited details.

After you have enabled / disabled features as per your requirement, click the Save button, to save the changes made by you.

Let us now move to the Inventory section.